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IFRIC 14 IAS 19: Limit on Defined Benefit Asset

Published July 2007. Effective 1 January 2008.

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IAS 19 limits the measurement of the defined benefit asset to the present value of economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan.

Minimum funding requirements which stipulate minimum contributions over a given period exist in a number of countries. These may limit the ability of an entity to reduce future contributions.

IFRIC 14 provides guidance on the interaction of the IAS 19 limit and any minimum funding requirements. In particular it addresses:

  • How entities should determine the limit placed by IAS 19 on the defined benefit asset
  • How a minimum funding requirement affects that limit
  • When a minimum funding requirement creates an onerous obligation that should be recognised as a liability in addition to that recognised under IAS 19.

Which version of the interpretation?

'Which version of the interpretation?' is only available to members of the Financial Reporting Faculty. Please note that to access electronic versions of IFRS through the links in these standard trackers you need to have first logged into eIFRS.

Annual period starts Effective version of standard Notes on amendments
On or after 1 January 2017 IFRIC 14 2020 Required Standards -

IFRSs referred to by IFRIC 14

Current proposals

  1. In some cases a surplus (asset) may be recognised in respect of a defined benefit pension scheme. This depends on whether any economic benefits of the plan are available to the reporting company. The IASB is proposing to amend IFRIC 14 to clarify how a company determines economic benefits in the form of a refund when other parties have rights to make decisions about the plan. The proposals were issued within ED./2015/5 Remeasurement of a Plan Amendment, Curtailment or Settlement / Availability of a Refund from a Defined Benefit Plan. The next stage in the project is the issue of final amendments.

This page was last updated 22 January 2020.